PNOC gets 27 proposals for LNG terminal project

MANILA, Philippines -
State-run Philippine National Oil Co. (PNOC) has received a number of proposals
for the development of a liquefied natural gas (LNG) terminal aimed to ensure
power supply ahead of the anticipated depletion of the Malampaya gas facility
by 2024, its top official said yesterday.

Majority of the offers
came from foreign companies interested in investing in the country’s LNG
sector, PNOC president Reuben Lista said in a briefing yesterday.

He said the state-run
firm received three offers from firms based in Singapore, two from Korea, seven
from China, six from Japan, two from Turkey, one from UAE, two from Spain and
one from Australia.

Meanwhile, only three
offers are from Filipino companies.

PNOC has set end-April
as deadline to accept offers for the LNG development, Lista said.

“We will study
all offers… We gave them until end-April to submit all proposals. Then we will
shortlist it,” he said.

“We will choose
what will bring the best benefit to the country and to our people and of course,
allow them to recover the cost of development. This is a continuing project…
this can go as much as 800 megawatts (MW),” Lista said.

The LNG terminal will
consist of an initial 200-MW power plant, storage facilities, liquefaction and
regasification units.

Lista said the
development of the facilities with off-shore regasification units would take
2.5 to three years while one with an on-shore facility would add another 1.5
years to complete.

“Our optimistic dream
is to finish the terminal by 2019, meaning it is completed and operational…our
pessimistic dream is 2020,” he said.

Once completed, the
output will be used to serve Philippine Economic Zone Authority (PEZA) areas
and provide electricity supply to the poorest of the poor, the PNOC chief said.

Last year, DOE
Secretary Alfonso Cusi said the government would spearhead the establishment of
an LNG terminal to ensure supply amid the impending end of contract of the
Malampaya deep water gas-to-power project in 2024.

The government will
also provide an emergency source of power when the Luzon grid loses supply due
to plant outages. This will be done through PNOC, DOE’s corporate arm.